SIPC Congratulates MF Global Inc. Trustee On Major Milestone With Pending Distribution Of Nearly Half A Billion Dollars
WASHINGTON, March 25, 2015 /PRNewswire/ -- With the filing today of a motion with the U.S. Bankruptcy Court for the Southern District of New York that would clear the way for the distribution to MF Global Inc. (MFGI) general creditors of $461 million, the Securities Investor Protection Corporation (SIPC) lauded the work of MFGI liquidation Trustee James W. Giddens.
SIPC President Stephen Harbeck said: "With this new step forward, Trustee Giddens will have achieved distributions to date covering nearly three quarters -- 72 percent -- of allowed unsecured general creditor claims. This is a major milestone in a complicated liquidation proceeding. This return to creditors exceeds the expectations that existed at the outset of the case. It is yet another testament to how the Securities Investor Protection Act works so well when it is called upon in the wake of the failure of a major firm."
Harbeck added: "The SIPC staff has worked with the Trustee and his staff throughout the case. The creditors have been very well served by the efforts of SIPC, the Trustee, his counsel, and consultants. Thanks to all who made this excellent result possible."
To date, the MFGI liquidation under SIPA has resulted in distributions for 100 percent of customer claims ($6.7 billion); 100 percent of secured, administration and priority general claimants ($32.3 million); and 39 percent of unsecured general claimants ($518.7 million).
ABOUT SIPC
The Securities Investor Protection Corporation (http://www.sipc.org) is the U.S. investor's first line of defense in the event of the failure of a brokerage firm owing customers cash and securities that are missing from customer accounts. SIPC either acts as trustee or works with an independent court-appointed trustee in a brokerage insolvency case to recover funds.
The statute that created SIPC provides that customers of a failed brokerage firm receive all non-negotiable securities - such as stocks or bonds -- that are already registered in their names or in the process of being registered. At the same time, funds from the SIPC reserve are available to satisfy the remaining claims for customer cash and/or securities held in custody with the broker for up to a maximum of $500,000 per customer. This figure includes a maximum of $250,000 on claims for cash. From the time Congress created it in 1970 through December 2013, SIPC has advanced $ 2.1 billion in order to make possible the recovery of $133 billion in assets for an estimated 772,000 investors.
All non-media/investor inquiries of SIPC should be directed to [email protected] or (202) 371-8300.
SOURCE Securities Investor Protection Corporation, Washington DC
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